Eqtec Regulatory News (EQT)

1 September 2022

EQTEC plc

("EQTEC", the "Company" or the "Group")

Update on Deeside Project Share Purchase Agreement and Sale of Project

Issue of Equity and Director Shareholding correction

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production confirms that, further to its announcement on 30 June 2022, Deeside WTV Limited ("Deeside WTV"), a wholly owned subsidiary of EQTEC, and Logik Developments Limited ("Logik") are in advanced discussions with a third party for the sale of the Project*. To facilitate the transaction an agreement to further extend the date ("Long Stop") for completing the share purchase agreement signed by Deeside WTV and Logik on 7 December 2020 (as amended by the supplemental agreement announced on 6 December 2021 and further amended by the supplemental agreements announced on 1 April 2022 and 30 June 2022) (the "SPA"), will be required. The extension to the SPA Long Stop is expected to be incorporated in the heads of terms of the intended sale transaction ("HoTs") which the parties expect to enter into by the end of September 2022, although there can be no certainty the HoTs will complete. The Company will update the market accordingly.

* The SPA relates to the currently approved 182,000 tonne waste reception plant along with 2 MW anaerobic digestion facility and a 9.9 MWe EQTEC Advanced Gasification Technology facility, (the "Project") at Deeside, Flintshire, UK.

Project progress

The Company is in advanced stages of discussions with Toyota Motor Manufacturing (UK) Limited, a global vehicle manufacturer, on heads of terms for the supply of gas and electricity to their Deeside Engine Plant from the Project.

Deeside WTV has also received updated head of terms (subject to contract) for gas and power offtake from TotalEnergies, a broad energy company that produces and markets energies on a global scale, with new tariffs which significantly improve project economics.

Discussions with shortlisted technology partners and EQTEC are ongoing, in order that the selected companies can provide their technical and commercial proposal for the downstream technology to convert syngas into hydrogen.

Further information about the Project

EQTEC is lead developer and technology provider for the Project in partnership with Logik and Anaergia Inc. through the Project SPV. As announced on 28 October 2021, Flintshire County Council's Planning Committee has resolved to grant planning permission for the proposed 9.9 MWe plant to enable a complete and local waste-to-energy solution, combining a 182,000 tonnes waste reception plant along with 2 MW anaerobic digestion ("AD") and EQTEC Advanced Gasification Technology. The planning authority's decision follows its prior approval of the site for the original plan of a recycling and AD facility. Additionally, through the Project, EQTEC and Toyota are exploring an innovative, circular and sustainable waste-to-energy solution for Toyota's engine manufacturing plant in Deeside. The site is currently on 6.27 hectares of land off Weighbridge Road on Deeside Industrial Estate, one of Europe's largest such industrial sites. The Project site is wholly owned by the Project SPV (acquired December 2020) and was formerly a Gaz de France power station.

The Project is one of three waste-to-energy/fuel projects that the Group is developing in the UK, including at Billingham, Teesside and Southport, Merseyside.

Issue of Ordinary Shares to strategic providers

The Company further announces that it is proposing to issue, in aggregate, 20,100,000 new Ordinary Shares (the "Supplier Shares") to certain strategic service providers providing business development and advisory services to the Group in satisfaction of fees due to them. The issue of the Supplier Shares will further align the interests of strategic advisers and service providers with those of the Company and its shareholders.

Admission

Application will be made to the London Stock Exchange for the Supplier Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM ("Admission"). Dealings in the Supplier Shares are expected to commence on 8.00 a.m. on 6 September 2022.

Following Admission, there will be 9,401,782,212 Ordinary Shares in issue. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

Director Shareholding Correction

Reference is made to RNS 4623S of the Company issued at 7.00 a.m. on 14 July 2022 in which the resultant shareholding and percentage for Thomas Quigley, Non-executive Director, should have been 35,054,154 shares and 0.37% respectively.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

ENQUIRIES

About EQTEC plc

As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.

EQTEC designs, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories and municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of synthetic natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.

Further information on the Company can be found at www.eqtec.com.